On Wednesday, Cathie Wood-led Ark Invest made a significant move by purchasing shares of Roblox Corp following its recent quarterly earnings report. The decision comes after Roblox’s stock took a hit post its second-quarter earnings announcement.
The Roblox Trade
Ark purchased a total of 865,287 worth $25.5 million at the closing price of $29.46 through its ARK Innovation ETF, ARK Next Generation Internet ETF and Ark Fintech Innovation ETF.
Roblox reported a 22% year-on-year growth in second-quarter FY23 Bookings, amounting to $780.7 million. However, the revenue, which grew by 15% Y/Y to $680.8 million, missed the consensus by over $100 million. The company’s EPS loss of $(0.46) also missed the consensus by a cent.
Despite the Average Daily Active Users (DAUs) seeing a 25% Y/Y increase, standing at 65.5 million, and Hours Engaged rising by 24% Y/Y to 14 billion, the Average Bookings per DAU (ABPDAU) dropped by 3% Y/Y. This slowing growth has investors concerned, leading to a 20.503% drop in RBLX shares, trading at $30.01.
Furthermore, Roblox recently announced its expansion to Meta Platforms‘ Quest virtual reality (VR) headsets. This move aims to bring the online game to a growing community of VR enthusiasts. The game will soon be available in beta version on Quest 2 and Quest Pro, and will also be compatible with the upcoming Quest 3. With a daily login of over 66 million users across various platforms, Roblox’s expansion to VR is expected to make the virtual realm even more social.
Other Key Trades:
Palantir Technologies Inc – Bought 14,275 shares through the Fintech Innovation fund. Ark also purchased 92,899 shares through the Innovation Fund and 15,550 shares through the Next Generation ETF.
NVIDIA Corp – Sold 3,848 shares through the Fintech Innovation fund.
ROKU Inc – Sold 12,039 shares through the Next Generation Internet ETF.
CRISPR Therapeutics AG – Bought 11,410 shares through ARK Genomic Revolution ETF ARKG.
2U Inc – Bought 801,471 shares through Innovation Fund.
